U.S. Inflation Reduction Act a risk to Europe's industrial base, EU's Vestager says
Reuters
Published Oct 26, 2022 10:46AM ET
By Foo Yun Chee
BRUSSELS (Reuters) - The U.S. Inflation Reduction Act and soaring energy prices pose a risk to some of Europe's businesses, European Union antitrust chief Margrethe Vestager warned on Wednesday as the United States and European Union launched a task force on the issue.
U.S. President Joe Biden signed the $430 billion anti-inflation bill into law in August, which includes state aid for certain industries, such as the car sector.
The EU has said the new legislation, which makes tax breaks conditional on U.S-manufactured content, puts at a disadvantage European car companies and those producing a wide range of goods from the "green economy" sector including batteries, hydrogen and renewable energy equipment.
Vestager, who is a European Commission vice-president, said the issue was crucial for the 27-country bloc.
"We consider this a very important question. Because it is not just a question of some individual businesses also benefiting from the subsidies that is enabled by the Inflation Reduction Act," she told a European Parliamentary hearing.
"It is a combination of the energy crisis and the way that the Inflation Reduction Act is working that puts at risk part of the industrial base in Europe," Vestager said.
She emphasised the importance of finding a solution with the U.S. government.
"And I think there is an understanding on the U.S. side of things that this is a situation where they need to engage in full in order to find solutions," Vestager said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.